Hail Damage Sales Inquiry?


#1

I followed a storm to Baton Rouge where there are many claims/jobs. I am new to roofing sales and left KY and my family in the hopes of much money. The company I am employed with insists on me pitching to the customer that we do NOT give estimates, Just have them sign a contract, meet the adjuster and hope that they come in above $200 a sq. if they dont then file a supplement and wait to turn the job into production until the supplement covers at least $200 a square.
This is the typical sales scenario:
(homeowner)“My insurance company told me to get some estimates? (me)Sir, we don’t give estimates, we just work for the amount of your deductible…However, we will give you $500 for a sign allowance in your front yard which will cover your deductible in most cases.”
(hommeowner)oh! okay where do i sign?"

The problem I have is that the majority of settlements are 130-160 a square (i’m including everything when i say a square)…Being that this is not sufficient to cover our costs we have to file supplements and keep the customer on hold till the additional money is met, if it ever is. Obviously this creates a problem between me and the homeowner. There question is always “I thought you didnt need an estimate?” “Why then cant you install our roof with what the insurance company gave you?”

My question is, being that I am new to the industry of storm/hail sales, is it normal for storm chasing roofing companies to tell the customer there are no estimates given? Or, do most storm roofing companies give an estimate and structure there business differently within their sales department?

I am considering looking for a new employer, I have 70+ deals in my pipeline but I don’t feel confident in the way the transaction is being conducted.

Any direction/thoughts?

Thank you,
Joe


#2

LOL…sounds like you are a CONtracting co.,lol…


#3

Is this not the norm in the industry? Where is the con part of it?Please explain your reply.

Joe


#4

I don’t chase storms,but I am a roofing professional. I think that any salesman that says to a prospect we don’t give a price…You have to wonder what kind of scam they are running. If you explain that the ins.co. will not provide the amount of funds to cover the cost,and that you will do what it takes to get the funding required to do the job, I would think that that would be more ethical…I.M.O.


#5

Storm Chasing Companies do not typically measure a roof and provide estimates.

They work off of Exactimate or M.S. & B. and know how to piece out every item that should be covered.

You will find that the out of State traveling Storm Chasing Companies all work basically the same.

It’s a numbers game.

Get 3 trades worth of work to kick in the GC, OH & P, for an additional 10% + 10% on top of the line items.

Half you get and half you don’t without a battle.

I personally despise these tactics, since they never provide a scope of work and a detailed contract for the unwary customer.

I would not mind discussing this further with you, if you want to e-mail me with your contact information.

Send to: eddiesdad@sbcglobal.net

Ed


#6

I don’t know you from anyone, & you very well could be a good guy who is trying to do the right thing by his family…

…however.

This exact scenario is what sets a roofing contractor or roofer apart from a mere salesman.

In my opinion, if you are giving money away @ a time when the cost of raw materials is going up, then you are doing a disservice to the customer, the roof & the trade. You aren’t even a great salesman because you’re selling on price alone.

This isn’t to say that the pressures of closing a deal aren’t great, however there are a lot of upgrades that the average production house could use & your co. probably isn’t detailing these kind of changes, i.e. moving from a 3-in-1 to a lead jack system.

IMO, the request for a supplemental is valid in asking for a difference in parts pricing (Exactimate is only updated once every 3 months) or a difference in measured size, etc. with you absorbing the price difference in something like the aforementioned leads… but to give away $$ when everything else is increasing, is nuts.

As you will find out, the reputation for storm chasers isn’t really all that great & unless you are supervising every aspect of a roof installation & know what to look for when it comes to a quality install, then you are doing a great disservice to your clients & the chances of a roof failure a few years downline are high whereas the chances of your employer answering the phone for these customers left in the lurch is low.


#7

im here in softball sized hail kansas. i usually ask for the material cost up front labor cost after job is complete. the insurance companies adjust no prob if the material cost is higher than what the originally give. u are just cutting yourself short. sign dropper. ya we have yall here right now too.


#8

Please give me a call. I own a company that follows after the storm, our overhead is small so we are able to do the jobs for $140-160 a square and sometimes we do them for less just to keep salesmen working!
903-218-5207.
Call me at home. We are home based in East Texas (close to you) and Fort Smith, Tulsa, etc.


#9

ttruman, if you’re doing jobs “for less” then this means that you are ALSO giving away the deductible, no?

If so, then you are also part of the problem, not the solution.

If this is the case (pricing a job below the insurance estimate), then HOW CAN YOU GIVE AWAY $$ @ a time when parts pricing & even labor pressures are costing the job MORE? Where is the margin being made up?


#10

I never do a job for less than total insurance estimate…unless there are some other items that the homeowner received a claim for and want’s someone else to take care of i.e. windows, metal roof , etc.


#11

Not true. If you’re giving away a “$ 250.00 sign allowance for advertising[sic]” where there really isn’t a need for one, then yeah - you’re giving away money to mitigate the deductible.


#12

who said there’s no need for a sign? i think there is a desperate need, for that, for referralls etc.


#13

Misplaced participle @ worst, but I think you (@ heart) knew what I meant.

Again, if you are relying on the offer of an artificially cheap deductible @ a time when prices for every aspect of both the raw materials side & labor side is going up, then the delta is a lot larger than $ 250.00.


#14

I was wondering if anyone can tell what duties or job description a salesman is supposed to do after he sells the job Thank You


#15

After you sell the job you have to make sure the customer has all questions answered and basically pick up the check.


#16

For a storm chaser sales person, your first duty is to run to the customer’s bank as fast as possible.

Then, you hop the first hobo freight car outta town.

Next, reconstructive facial surgery & false identity papers.

That should get you started…


#17

Hey Edtheroofer,
What will the Insurance Companies allow for overhead and profit?
Since leaving the company I was working for a couple weeks ago, I have structured my own company around a local business. I have been creating excel spreadsheets and itemizing his costs. (poor gentleman doesnt even realize his true costs) however, I am curious what the Insurance Co will allow for overhead and profit. (I have read that they will not cover this)
I structure above bar and unfortunately this means that I incur WC, etc… Therefore, I must have a place to account for these costs…which is Overhead.

Your thoughts/guidance?


#18

I know what various adjusters I have met and also discussed this with in their forums.

Every Insurance Company has their own guidelines for the adjuster to follow.

Ii can be that a minimum of 3 trade categories are required for the entire scope of work under on contractors direction, which seems to be the most typical scenario, or 2 trades only, if the work is complex or more than 3 trades.

The most common allowance for General Contractors O & P is 10% and 10%, but their are occasions they allow an additional 10% as well.

Some calculate the O & P in their line item data base.

So, there is not just one answer to cover all companies and circumstances.

Ed


#19

Can I email you my created spread sheet on a particular job I scoped today?
If you like it feel free to use it for your work…I dont mind at all.
I have not yet met the adjuster but I will present this spread when I do.
Tell me your thoughts, higher…lower…o&p…etc…
whats your email address?


#20

Feel free to e-mail it to me.

eddiesdad@sbcglobal.net

I am not sure I can advise you on YOUR pricing though.

For an accurate adjusters pricing viewpoint, I suggest that you take the 30 day free trial using Xactimate Estimating Software.

If you find that helpful, spend the ??? around $ 1,500.00 to purchase the yearly license.

If that is too expensive, then pay an independant adjuster his fee to provide you with scope of work using Xactimate.

Ed